Melbourne’s auction market will face its biggest test for the year this weekend when more than 1100 properties go under the hammer.

The spring auction season is highly dependent on the city’s sporting calendar. Campaigns typically start on the weekend after the AFL grand final.

Hocking Stuart chief executive Nigel O’Neil said there was pent-up demand to sell prior to the Melbourne Cup after this year’s double grand final, an indecisive federal election and school holidays disrupted the traditional spring auction lead-up.

“We have got 166 auctions this weekend, making it our biggest since the spring of 2007," he said.

“My view is that homes in the sub $750,000 to $800,000 market will be strong, reasonable between $1 million to $1.25 million, and above that it will be a real test for the market given prices have come off across premium suburbs in the past three months."

RP Data research director Tim Lawless predicted just over half of all properties would sell, a sign of supply outstripping demand.

“Melbourne has been a stand-out performer but since June prices have fallen each month . . . with interest rates rising it will be a further dampener on the market," he said.

Lawless predicted Melbourne house prices would experience further, modest declines this year held up by population growth and low unemployment.

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According to the Real Estate Institute of Victoria, this weekend’s auctions are the highest since March 2008.

The bayside suburb of Brighton will be busiest, with 38 scheduled auctions this weekend.

Morrell and Koren Bayside buyers advocate Damian Taylor said Australians living overseas were being priced out of the market by the strong Australian dollar.

“There’s going to be a stand-off between buyers and sellers – agents have to be proactive with their vendor," he said.

Buxton Real Estate Brighton director David Hart said he was having a “few frank conversations" with his sellers about the price they should expect. “Most vendors are receptive to the fact the market has adjusted from its early highs of 2010," he said.